Sahara Bikas Bank closes its IPO; over-subscribed 30 times in 3 days

ShareSansar, June 10:

Sahara Bikas Bank Limited has closed the issuance of Initial Public Offering (IPO) worth Rs 60 lakh today.

The class ‘B’ development bank based in Malangwa of Sarlahi district had floated the IPO on June 6.

According to an official of Global IME Capital Limited, which is managing the IPO, the final data of 3 days are still being compiled. However, they later mentioned that the IPO has already drawn approximately Rs 21 crore and is oversubscribed around 30 times till now.

“The IPO is drawing much amount, and is likely to be oversubscribed by around 50 times,” says an official with the issue manager, “The apparent reason for the overwhelming demand for the IPO is the prospect of right shares the company is planning to float shortly.”

Applicants had to apply for a minimum of 50 units and maximum of 5,000 units of the primary shares being floated at the face value of Rs 100 per unit.

Of the total 60,000 units of the shares being issued, 3,000 units had been earmarked for the mutual funds and another 1,200 had been set aside for the bank staffers.

Sahara had got the approval from the Securities Board of Nepal (SEBON) on April 16 to float the IPO.

The development bank’s paid-up capital will rise to Rs 2 crore from the existing Rs 1.4 crore following the IPO.

The development bank has branches in Barahathawa, Bayalbas and Lalbandi of Sarlahi.

Sahara’s company secretary Ajit Kumar Jha said that they are also planning to float at least 1:1 right share shortly after the IPO to further shore up the paid-up capital to meet the Central Bank’s requirement of Rs 5 crore by the end of this fiscal year.

IPO ANALYSIS OF SAHARA BIKASH BANK LIMITED